Life Insurance Corporation (LIC), India’s largest public sector insurer, is likely to go for an IPO (Initial Public Offering) after October this year. Coming ..
Life Insurance Corporation (LIC), India’s largest public sector insurer, is likely to go for an IPO (Initial Public Offering) after October this year. LIC is likely to list on the stock market in the second half of the next financial year, the official said. It is learned that in the general budget introduced by Union Finance Minister Nirmala Sitharaman for 2020-21, it has been announced that the shares in LIC will be sold through IPO. Tuhin Kanta Pandey, secretary, Department of Investment and Public Asset Management (Dept.), said the stock market regulator would follow SEBI guidelines on the listing, which would require amending the law and would consult with the Ministry of Justice.
Tuhin Kanta Pandey answered many questions asked by the media regarding the LIC IPO. He said the LIC share stock listing would take place only after October this year. Pandey said the sale of shares in LIC would be transparent and would guide the way everyone buys. Asked how his stake in LIC would be sold, Pandey said he expected it to be 10 per cent and clarified that no decision had been taken yet.
The Center has set a target of raising Rs 90,000 crore through sale of stake in LIC. IDBI Bank has set a target of Rs 2.10 lakh crore by selling shares in other companies. At present, the government has a 100 per cent stake in LIC, while IDBI Bank has a 46.5 per cent stake. With a history of over 60 years, LIC now has over 70 per cent stake in the insurance sector. It accounts for 76.28 per cent of policy sales and 71 per cent of first year premium collections.